Work

Access to finance: How does state share participation reduce management costs in private firms?

Year: 2025

Type: article

Abstract: This paper investigates the effect of state capital participation on management cost in private firms, based on data from China’s A-share listed companies for the period 2007–2023. The results suggest that the presence of state shareholding contributes to reduced management cost. Mechanism analysis indicates that state capital helps ease financial constraints and improves access to informal financing, both of which contribute to lower management cost. These findings remain robust after addressing potential endogeneity bias.

Source: International Review of Economics & Finance

DOI: 10.1016/j.iref.2025.104699

Author: Chen Chen

Institution: East China Jiaotong University

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $1,930

Funders: Jiangxi Provincial Association of Social Sciences, National Natural Science Foundation of China